Practice and Disclosures
When a broker deposits his own personal or business funds in a client trust fund account, that act is termed:
Commingling Commingling it is the illegal act of a broker combining clients' funds with personal funds because, by law, a broker is required to use a separate trust or escrow fund to temporarily hold a client's funds.
When an escrow officer receives two pest control reports, the escrow officer should:
Get the buyer's and the seller's written approval on which one to use If there are two or more Termite Reports, the Escrow Company should make the Broker aware of this fact and then wait to hear from the Buyer and Seller for their instructions.
RESPA would apply to which of the following?
1-4 family residential dwellings RESPA (Real Estate Settlement Procedures ACT) applies to (1) to four (4) family residential dwellings. It is primarily there to provide consumers with enough information to enable them to shop for settlement services.
Fault zones around known earthquake fault lines must be disclosed to prospective buyers of certain properties in California. Typically, these zones are:
1/4 mile wide;Aliquist-Priolo Act Designates Special Studies Zones that are ¼ mile wide along earthquake fault lines.
Of the 45 hours of continuing education the licensee must complete:
18 Hours of Consumer Protection When a licensee needs 45 hours of continuing Education to renew his/her licensees, at least 18 hours must be consumer Protection.
In which of the following years did the U.S. Supreme Court prohibit all racial discrimination when real property is sold or rented
1968 Jones v. Mayer The U.S. Supreme Court, utilizing the Thirteenth (13th) Amendment as the basis for its decision, upheld anti-discrimination laws as Constitutional in 1968
When a buyer is given a defective TDS which contains obvious omissions about the condition of the property, the buyer can bring legal action against the seller and real estate licensee within:
2 years Transfer Disclosure Statement is required of the seller even if sold "as is" for sale of a four unit residential building. If the TDS is amended, the buyer has 3 days to rescind out of the contract. If the TDS is defective the buyer has 2 years to sue the seller per CC §2079.4. The Seller should reveal all known defects but not repairs that are up to building code on the TDS. The Licensee can never complete the Seller's portion of the TDS.
How long does a buyer have to rescind upon receiving an amended TDS?
3 days Transfer Disclosure Statement is required of the seller even if sold "as is" for sale of a four unit residential building .If the TDS is amended the buyer has 3 days to rescind out of the contract. If the TDS is defective the buyer has 2 years to sue the seller. The Seller should reveal all know defects but not repairs that are up to building code on the TDS. The Licensee can never complete the Seller's portion of the TDS
From the date they are taken, receipts for copies of the real estate commissioners subdivision final report must be retained for a period of
3 years
An agreement between Adam granting Bob the right to offer, sell, or distribute goods or services under a marketing plan described by Adam is commonly known as
A franchise agreement Franchise Opportunities are agreements between a Franchisee and a Franchisor in which the Franchisee consents to following a specific marketing plan of the Franchisor.
Of the following, which is considered a violation of fair housing laws in regards to periodic tenancy:
A landlord that requires a co-signer exclusively for tenants who are single A landlord who requires a co-signor only for single tenants would be in violation of fair housing laws
Which of the following is authorized to manage property for the general public?
A licensed real Estate broker A Licensed Real Estate Broker may manage real property for the general public.
One of the following actions, taken in relation to advertising the sale of real property, is considered prima facie evidence by the real estate commissioner in California as being misleading or deceptive advertising. Which one is so regarded?
A misleading map directing prospective purchasers to the site of a property for sale Misleading Advertising is advertisement that is deceptive or gives a false impression to consumers. For example, a misleading map, or misleading statements, like "move right in" if the property needs major repairs, or "no down payment required" when it is clear that it will be recommended to the buyer to put up the money for a down payment
What is RESPA?
A standard for closing procedures.The intent of RESPA -- the federal Real Estate Settlement Procedures Act -- is to make borrowers more aware of costs and charges.
Which of the following would be deemed A RESPA violation?
A title insurance company paying $40 for referring clients.RESPA makes it illegal for a title insurance company to pay a broker $40 (or any compensation) for referring clients to that title company.
The court orders that the property of Cliff Dimsdale be sold to satisfy creditors. What document will they issue ordering this judgment?
A writ of execution.A "writ" is a judicial order and a "writ of execution" is a written command to carry out a sentence or procedure in accordance with the judgment of the court.
Withdrawals from the real estate client's trust account can be made by the broker or by which of the following people, when authorized by the broker:
Anyone employed by the broker.Trust Fund Account is usually a separate checking account is used to separate a Client's money from the Broker's money, although a Trust Fund Account can hold up to $200 of a Broker's money without issue. Any employee who is authorized by the broker can withdraw monies from the Trust Fund Account.
Which of the following is not a dischargeable debt according to the Bankruptcy Code:
All of the other options are correct A discharchable debt is an amount owed to a creditor that can be terminated or wiped out in a bankruptcy proceeding. Some debts are non-dischargeable. Examples of debts that are automatically excluded from discharge are taxes, alimony or spousal maintenance, child support, debts incurred due to drunk driving violations, etc. If a debt is non-dischargeable, collection activity may resume after the Chapter 13 case is completed.
A neighborhood is overwhelmingly white while an adjoining neighborhood has recently experienced an influx of homeowners from another ethnic group. A real estate salesperson begins canvassing the white neighborhood telling people they should sell now because the minorities will soon be moving in and property values could drop. Which of the following violations is that person guilty of?
All of the other options are correct The terms mean the same thing and refer to attempts to create and exploit fear about property values based on racial, religious or other prejudices.
When a deposit receipt on the sale of a house states that the property is being sold "as is," it:
Also requires a real estate transfer disclosure statement Transfer Disclosure Statement is required of the seller even if sold "as is" for sale of a residential building up to four units. If the TDS is amended the buyer has 3 days to rescind out of the contract. If the TDS is defective the buyer has 2 years to sue the seller. The Seller should reveal all known defects but not repairs that are up to building code on the TDS. The Licensee can never complete the Seller's portion of the TDS.
Which act requires that "reasonable accommodation" be made in public?
Americans with Disabilities Act The American with Disabilities act, passed by Congress in 1990, this act requires that "reasonable accommodation" be made in public accommodations, including the workplace, for those with physical or mental disability. As a result it would require the removal of architectural barriers on some commercial properties.
The Federal law requiring unrestricted access to public accommodations is the:
Americans with Disabilities Act.The Americans with Disabilities Act which gives civil rights protection to individuals with disabilities similar to those provided to individuals on the basis of race, color, sex, national origin, age, and religion. It guarantees equal opportunity for individuals with disabilities in public accommodations, employment, transportation, State and local government services, and telecommunications.
Funds can be withdrawn from a broker's trust fund account by which of the following persons?
Any authorized employee of the broker.A Trust Fund account is usually a separate checking account that is used to separate a client's money from the broker's money, although a Trust Fund account can hold up to $200 of a broker's money without issue. Any employee who is authorized by the broker can withdraw monies from the Trust Fund account. That authorization does not have to be in writing.
Kelly was the listing agent for a property that Andrew, a salesperson from another brokerage, found a buyer for. At closing, his commission is for less than what he believes was agreed to and a dispute arises. According to the Code of Ethics of the National Association of REALTORS(R) how will they settle this matter?
Arbitration The purpose of arbitration is to settle disputes as quickly, as simply and as cost-effectively as possible. In a sense, it\'s the opposite of litigation which involves attorneys, courts, high costs and drawn-out procedures. However, while the Code of Ethics mandates arbitration as the first step, it does not deny a plaintive the right to sue later if agreement cannot be reached or one party fails to live up to the agreement.
The commissioner's final public report on a residential development would include all of the following except:
Assurance that the developer is not charging an excessive price for the properties The Public Report DOES NOT guarantee that the property has not been overpriced.
A broker who holds a valid listing on a property places a classified ad for the property containing only the following information "For Sale: 3 bedroom, 2 bath home with swimming pool. Asking price $165,000. Telephone 555-9276". This type of advertisement would be an example of a:
Blind ad Blind Advertising is any real estate advertisement that does not properly identify the broker. When advertising real property as an agent, a salesperson must always remember to include the employing broker's name in the advertisement
Broker Bill found that his agent Carumbo was taking a referral fee from the lender Alicia. Upon finding this out he immediately reported Carumbo and Alicia so the DRE could take the appropriate action. Under the preceding circumstances, which is true?
Both Broker Bill and agent Carumbo could be liable, even though he reported Alicia's foul business practice promptly.Referral Fees, Kickbacks, unearned fees- Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or any thing of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee-splitting and receiving unearned fees for services not actually performed. Violations of Section 8's anti-kickback, referral fees and unearned fees provisions of RESPA- in a criminal case, a person who violates Section 8 may be fined up to $10,000 and imprisoned up to one year. In a private law suit both the BROKER and the SALERSPERSON who violates Section 8 may be liable to the person charged for the settlement service an amount equal to three times the amount of the charge paid for the service. Therefore, both Broker Bill and agent Carumbo could be liable.
A developer, to avoid discrimination, instructed his sales staff: (1) Give special preference to women who want to purchase; and (2) set aside the same number of homes for each ethnic group. Which answer best describes these policies:
Both policies are discriminatory and therefore illegalSelling properties based on gender preferences or to fill ethnic or racial quotas is discrimination.
A real estate broker, acting as agent for a landlord, has the following instructions: Instruction I. Collect a larger deposit from single men than from single women or couples; Instruction II. Advertise only by encouraging existing tenants who are predominantly white to solicit prospective tenants from among their friends. Which of these instructions would be prohibited by the Federal Fair Housing Act:
Both;
When a broker hires a salesperson under a valid independent contractor agreement, which of the following is correct:
Broker may be held liable for the salesperson's conduct in a real estate transaction;A Broker must oversee the work of any Salesperson(s) even if the Salespersons acts as a independent contractor. A Broker must assume a supervisory role over these individuals, because the Broker is still liable for a Salesperson's conduct. The broker must pay Workers Compensation insurance
The real estate commissioner would not permit which of the following mortgage loan advertisements:
Call our toll free number 1-888-FOR-A-LOAN It is illegal for any advertisement to suggest that a loan can be acquired over the telephone. [For example, if a Mortgage Company ran an advertisement that read "Just call us at 1-888-FOR-A-LOAN", the advertisement would be illegal.
Listing a home at an inflated price requiring minority prospects to pay that price, but accepting a lower price from other prospects:
Could cause the listing salesperson and broker to be liable for money damages in a fair housing suitListing of a property at an inflated price and requiring that price for minority prospects, but accepting a lower price from other prospects could cause the listing salesperson and broker to be liable for money damages in a fair housing suit.
Tammy was told that she was not allowed to live in Deckerville because people of her ethnic background are not welcome there, whom should she complain to?
Department of Fair Employment & HousingDepartment of Fair Employment & Housing is set up to receive discrimination complaints.
In selling a house, certain charges are prohibited by the real estate settlement procedures act. An appropriate, buyer or seller may legally be charged for all of the following except
Disclosure settlement statements A Uniform Settlement Statement must given the borrower by the lender at no charge to the borrower.
In assessing the profitability of a real estate office, the broker must consider "desk cost." Which answer best describes how to calculate "desk cost:"
Divide the total operating expenses of the office, including salaries, rent, insurance, etc., by the number of salespersons.Desk Cost are the total operating expenses of a Broker's Office divided by the total number of Salespersons in that same office.
Under the Alquist-Priolo Special Studies Act, a subdivider would be required to disclose to potential purchasers:
Earthquake fault lines Aliquist-Priolo Act Designates Special Studies Zones that are ¼ mile wide along earthquake fault lines.
Which case gave rise to the law requiring the seller and agent to make full disclosure of the condition of the property?
Easton vs Strassburger "Easton VS. Strassburger" gave rise to the law requiring the seller and agent to make full disclosure of the condition of the property.
Which court case gave rise to the law requiring the seller and agent to make full disclosure of the condition of the property?
Easton vs. Strassburger In California, the landmark case of Easton vs. Strassburger (1984) expanded the broker\'s duty of disclosure. The court held that a real estate broker has an affirmative duty to conduct a reasonably competent and diligent inspection of residential property and to disclose to prospective purchasers all facts revealed by the investigation that materially affect the value or desirability of the property.
California Coast Homes, Inc. is just opening up a new-home subdivision. To whom must they give copies of the public report?
Every prospective buyer.The Public Report must be made available to any person who requests it at any time.
When a real estate licensee fails to renew a license before it expires, the licensee:
Has two years from the expiration to renew by paying a late fee, but will not be required to take the state exam again A License gives the holder "the personal, revocable, and non-assignable authority to do a specific act or acts on the land of another." An expired Real Estate License can still be renewed late, up to two years after its expiration. A licensee needs 45 hours of continuing Education to renew his/her licensees, at least 18 hours of the 45 hours must be consumer protection.
If a deed has a restrictive covenant which prohibits the sale of the property to persons of a particular race, that covenant will:
Have no effect on the conveyance, but the covenant will be unenforceable Racial deed restrictions are unenforceable because they violate the U.S. Constitution. They have no effect on the conveyance.
If a contract for sale provides that the owner is selling his home in an "as-is" condition, then:
Hidden and latent defects must still be disclosed to the purchaser.Transfer Disclosure Statement is required of the seller even if sold "as is" for sale of a four unit residential building .If the TDS is amended the buyer has 3 days to rescind out of the contract. If the TDS is defective the buyer has 2 years to sue the seller. The Seller should reveal all know defects but not repairs that are up to building code on the TDS. The Licensee can never complete the Seller's portion of the TDS.
A licensed real estate salesperson placed a "blind ad" in a local newspaper. A "blind ad" does not properly:
Identify the broker Blind Advertising is any real estate advertisement that does not properly identify the broker. When advertising real property as an agent, a salesperson must always remember to include the employing broker's name in the advertisement.
A land developer offers a free prize to anyone who replies to his direct mail advertisement and visits the site of his subdivision. The sub-divider requires the prize winner to attend a sales presentation at the subdivision site prior to awarding the prize. The sales presentation requirement was not mentioned in the advertisement. This kind of promotion is:
Illegal because it did not disclose the sales presentation attendance requirement.Prizes are legal provided that the advertisement states that to receive the prize requires attendance at a sales presentation. Failure to disclose attendance requirements makes it illegal.
Under California law, the Real Estate Commissioner has authority to do which of the following:
Impose fines, revoke licenses and Promulgate rules and regulations As head of the California Department of Real Estate, the Commissioner promulgates rules and regulations in the California Code of Regulations that essentially have the effect of law. The Commissioner also has the sole authority to grant, limit, suspend, or revoke a real estate license in the State of California. Not even the courts have this power.
Why do brokers use a trust fund account?
In order to separate trust fund money from the broker's money Usually a separate checking account is used to separate a Client's money from the Broker's money, although a Trust Fund Account can hold up to $200 of a Broker's money without issue.
Broker Kim took a 90-day exclusive agency listing to sell a property that was owned by Joe. After 30 days, Kim had not sold the property, so Joe sent him a certified mail letter canceling the listing. One week later Joe listed the property with several brokers using open listings. Two weeks later one of the brokers who had an open listing on the property completed a sale to new owners. In this situation Joe most likely:
Is liable for payment of commission to Kim as well as to the selling broker.If two listings are signed and one is an exclusive listing, the seller may be liable for two commissions.
Broker Al, who is not a member of any trade organization, has been using new advertising slogan: "A new breed of realtor." Concerning this practice:
It is grounds for revocation or suspension of his real estate licenseREALTOR® is a registered trade name that may only be used by members of the NATIONAL ASSOCIATION OF REALTORS®. REALTORS® subscribe to a strict Code of Ethics which governs their conduct. If you are not a member of the association of Realtors you can not use it in your advertising.
Broker Bob has had a house listing for sale for nine months without selling it. He knows that the structure needs major repairs, and he has it listed way above market value. He runs an ad saying "fantastic property, move in ready. Bob 934-2529" This ad is bad because:
It is misleading advertising because Bob knows it needs major repairs and you can not move right inMisleading Advertising is advertisement that is deceptive or gives a false impression to consumers. For example, a misleading map, or misleading statements, like "move right in" if the property needs major repairs, or "no down payment required" when it is clear that it will be recommended to the buyer to put up the money for a down payment
Carol Padilla is a real estate salesperson employed by Vitality Properties. She sells a home listed by another broker, Amplify Realty. After escrow was opened, but before closing, she asks the Amplify broker for a $1,000 advance against her commission. What happens if the Amplify agrees?
It will be a violation of real estate law.If the Amplify broker acted as She asked, it would, in fact, be a violation of the law on two counts. First, a licensee can only accept compensation from his or her employing broker. Second, no commission is earned until closing, so an "advance" against a specific sale can never take place.
A real estate broker advertises that she will give a microwave oven valued at $500 to anyone who purchases a property listed with her office. This type of advertisement is:
Legal if proper disclosures are made to all parties of interest.It is ok for an agent to advertise that he will give away gifts to buyers as long as he discloses this to all interested parties. An example of a gift would be a Microwave.
Who enforces the California State Housing Act?
Local officials regulating the issuance of building permits.This act pertains largely to discrimination based on physical handicaps. It is administered by those who control building permits since that is often the quickest means of correcting problems of non-compliance.
When a buyer gives the agent a post dated check, it:
May be retained but must be disclosed to the seller.An agent may accept a post dated check from a buyer as long as it is disclosed to the seller.
Broker Kiki took a listing on a 10 unit apartment house and wrote up a financial analysis showing a 12 percent yield on the investment. In the analysis, Kiki did not allow for a vacancy factor, maintenance expenses, or reserves for replacement of furniture and equipment. Kiki showed this analysis to Buba who bought the property. Which of the following describes the above as a possible violation of Real Estate law:
Misrepresentation Misrepresentation Occurs when there is obvious knowledge of a certain fact which caused a buyer to enter into a contract. An example of misrepresentation would be claiming that there is no expense on income property, misrepresentation is fraud
In addition to the duties of diligence, care, and skill, a real estate agent owes the principal a full disclosure of all facts material to the subject of the agency. Any intentional concealment of such facts by the agent would probably be regarded as:
Misrepresentation Misrepresentation by a Licensee will subject that Licensee not only to disciplinary action, but potential civil and criminal suits as well. Misrepresentation Occurs when there is obvious knowledge of a certain fact which caused a buyer to enter into a contract. An example of misrepresentation would be claiming that there is no expense on income property, misrepresentation is fraud
When making a loan, amortization tables are used in order to determine the:
Monthly payment;An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.
If a seller's agent in a real property sale transaction pays part of his commission to the buyer of a property, the agent:
Must inform the seller that he is doing so Any arrangement by a seller's agent to pay part of his commission to the buyer must be disclosed to the seller, or the seller's agent becomes subject to criminal penalties
When is it permissible for a licensee to fill out the seller's portion of the TDS on his own, without the seller's involvement?
Never.Transfer Disclosure Statement is required of the seller even if sold "as is" for sale of a four unit residential building If the TDS is amended the buyer has 3 days to rescind out of the contract. If the TDS is defective the buyer has 2 years to sue the seller. The Seller should reveal all known defects but not repairs that are up to building code on the TDS. The Licensee can never complete the Seller's portion of the TDS.
Which of these acts provides for punitive action against businesses accused of discrimination based on sex, color, religion, ancestry or national origin?
The Unruh Act. Named for Jesse Unruh, author of the 1959 act, it provides for specific remedies against hotels, restaurants, hospitals -- virtually any public business or organization -- for discriminating on the basis of sex, race, color or other personal characteristic.
Allison has just qualified for her salesperson's license. How much time does she have to file her application to practice?
One year from the date she passed the exam.Although most people who pass the exam are anxious to get their license and begin practicing real estate, the rules do allow up to a year to make the application.
Sarah has just qualified for her salesperson's license. How much time does she have to file her application to practice?
One year from the date she passed the exam.Although most people who pass the exam are anxious to get their license and begin practicing real estate, the rules do allow up to one year to make the application.
Jerry Smith is a broker who has been found guilty of violating the Unruh Act. What penalty or penalties is he subject to?
Payment of exemplary damages to the victim and payment to the victim for actual damages he or she incurred.In addition to actual and exemplary (or punitive) damages, Jerry may also be ordered to pay emotional damages and served with a cease and desist order.
Jason owns a property in Bel Air and enters into an exclusive right-to-sell contract with Beverly, a licensed broker. As part of the agreement, Beverly agrees to advertise the home in a special properties catalog at a cost of $250, which Jason agrees to pay. How must Beverly handle Jason's check?
Place it in her trust account and draw against it only to pay actual advertising expenses.Any money given by a client to a salesperson or broker must be deposited into the broker's trust account.
The Federal Fair housing law provides for a United States policy of:
Providing fair housing for all persons throughout the United States The Federal Fair Housing Law creates a policy of providing fair housing for all persons through the United States
When a buyer in a residential property transaction receives an amended transfer disclosure statement from the seller's agent, he is legally entitled to:
Rescind the purchase contract Transfer Disclosure Statement is required of the seller even if sold "as is" for sale of a four unit residential building .If the TDS is amended the buyer has 3 days to rescind out of the contract. If the TDS is defective the buyer has 2 years to sue the seller. The Seller should reveal all know defects but not repairs that are up to building code on the TDS. The Licensee can never complete the Seller's portion of the TDS
Per Regulation Z, if a house for sale is advertised in a newspaper and only the APR is stated,:
additional disclosures are not required.The APR is the cost of credit that consumers pay, expressed as a simple annual percentage. If the ad only states the APR, then other disclosures are not necessary.
For a licensee acting on behalf of a mobile home owner, which of the following would NOT be a violation of license law?
Selling a mobile home that has been registered with HCD Mobile homes registered with the department of Housing and Community Development meet certain standards for size and habitability and are affixed to "permanent" foundations. As such, they may be sold much like any other property by licensees.
Amanda assures real estate salesperson, Emily, that the home she's selling has hardwood floors throughout. This appears to be true, since it is exposed in all rooms but two of the bedrooms which have wall-to-wall carpeting. Emily passes these assurances on to buyers who later discover that neither of the bedrooms has hardwood. What, if anything, is Emily guilty of.
She's guilty of misrepresentation.Emily is guilty of misrepresentation because she made a false assertion based on facts she should have verified. She could have avoided the violation by lifting a corner of the carpet to inspect the flooring or making a written disclosure to the buyers such as, although the seller believes hardwood is under the carpet, she does not know and cannot guarantee that to be true.
A real estate licensee has a practice that when he is approached by members of minority groups who want to be shown property, he avoids showing them property in non-integrated areas. This is called:
Steering Steering is a form of racial discrimination in which brokers or salespeople direct interested purchasers away from and toward certain neighborhoods to control racial composition. If an agent only shows minority buyers houses that are located in segregated areas, the agent would be guilty of "Steering." An Agent should select the houses that he would show to a minority the same way that he would select houses for any other prospective buyer.
Monies, labor, supplies or other consideration given by a landlord to a tenant to construct the premises for occupancy would be called:
Tenant improvement allowance Tenant improvement allowance is when a landlord agrees to allocate a certain amount of money to change the property in accordance to the tenants needs.
Which of the following acts requires public accommodations to be made accessible to all people?
The American with Disabilities act The American with Disabilities act might require the removal of architectural barriers on some commercial properties.
Which of the following must be furnished by the seller of a condominium to the buyer
The CC&R's, The Bylaws and The Financial Statements By-Laws, CC&R's (Covenants, conditions and restrictions) must be provided by the seller of a condominium to the Buyer a copy of the Condominium's By-Laws, CC&R's, and the most recent Financial Statement of the Homeowner's Association.
Which act allows the California Department of Fair Employment and Housing to take action against public or private housing entities that discriminate?
The Rumford Act.While the Unruh act provides protection against discrimination by businesses, the Rumford Act provides protection against discrimination in housing by landlords, apartment owners, housing developers, mortgage companies and real estate firms.
A broker's ad in a local newspaper says that if a buyer or seller will bring this ad to his office and either list or buy a property through him, that he will give that person $50. Which of the following is correct?
The broker can give $50 to the buyer or seller It is legal to give money to an unlicensed BUYER or SELLER
When running a real estate office, the phrase "company dollar" means:
The income of an office after all commissions are paid to the salespeople Company Dollar is the gross income of an office minus commissions.
Which of the following is a violation of fair housing laws?
The landlord requires a co-signer exclusively for tenants who are single;Placing extra requirements on single buyers is discriminatory and is a violation of the Fair Housing Laws. [For example, requiring a co-signor only for unmarried tenants.]
An Asian prospective purchaser asks to be shown homes but does not specify that he wants to see homes located in a neighborhood where there are no Asians. How should a licensee decide what properties to show him?
The licensee may select homes for showing as he would for any other prospect.An agent should select the houses that he would show to a minority the same way that he would select houses for any other prospective buyer.
When a real estate licensee advertises properties on the internet, which of the following best describes the licensee's responsibilities?
The licensee must exercise proper supervision over any non-licensee who responds to inquiries Unlicensed assistants are NOT allowed to solicit buyers or sellers for a licensee. Any activity by an unlicensed assistant in this regard would be a violation of California Real Estate Law by both the unlicensed assistant AND the licensee. A licensee must examine and approve any advertisement generated by an unlicensed assistant before publication. A licensee must supervise any responses to inquiries even on the internet.
Salesperson Andrews receives an offer to purchase, which is accompanied by a $2,000 earnest money deposit in the form of a personal note. Which is true in this case?
The offer should indicate that the deposit is in the form of a note.Although cash (in the form of a check) is the more accepted form of earnest money, a personal note or any other "valuable consideration" acceptable to the owner is allowable.
Which of these principles states that "a person will not pay more for one property than he or she would for another that's equally desirable?"
The principle of substitution.The principle of substitution is at the heart of real estate pricing and competitive market analyses.
Normally, a structure used primarily as a warehouse would be rented by:
The square foot;Warehouses are usually rented per square foot.
What actions are required of agents regarding "material facts?"
They must always be disclosed.Material facts- those dealing with a property's physical structure or the ability of parties to perform as promised- must always be disclosed when the agent knows or should have known about them.
Race restriction limiting the sale or lease of property to person of the Caucasian race were imposed on a subdivision in 1920, due to expire in 2017. The restrictions are presently:
Unenforceable
Larry, an unlicensed employee of a real estate broker, hands out door-hangers flyers and makes telephone solicitations, seeking buyers and sellers. Under the real estate law, his activities are
Unlawful for both Larry and the employing brokerUnlicensed Assistants are NOT allowed to solicit buyers or sellers. Any activity by an Unlicensed Assistant in this regard would be a violation of California Real Estate Law by both the Unlicensed Assistant AND the Broker. A Broker must examine and approve any advertisement generated by an Unlicensed Assistant before publication. A Broker must supervise any responses to inquiries even on the internet.
Bill offered to buy Willie's house. The same day an offer came in from Wendell. Willie consulted his agent about the offers; the neighbor came over and weighed in on the conversation and informed Willie that he would rather not live by Bill because he is black. The agent told Willie that he should not deal with a black buyer and should deal with Wendell because he is white. Willie thus accepted the offer based upon the fact that Wendell was white. According to fair housing, which of the following parties is not guilty of discrimination?
Wendell If a person offered to buy a house, and his offer was chosen based upon his race, the person making the offer has not discriminated.
When a licensee negotiates a loan secured by real property, the licensee must deliver a mortgage loan disclosure statement to the borrower:
When signed The Loan Broker Statement gives the borrower detailed information about the loan. It also includes information about all costs and expenses that will be charged to the borrower. Once signed by the borrower, a copy of this Statement must be given to the borrower for every loan negotiated by a Broker.
When must a copy of the loan broker statement be given to the borrower?
When signed The Loan Broker Statement gives the borrower detailed information about the loan. It also includes information about all costs and expenses that will be charged to the borrower. Once signed by the borrower, a copy of this Statement must be given to the borrower for every loan negotiated by a Broker.
A real estate licensee may lawfully refuse to show a home to an Asian prospect who has requested to see it in which of the following situations:
When the owner is out of town and has instructed the licensee that no showing may be made in his absence It is permitted for an agent to refuse to show a property to a minority buyer if the owner is out of town, and as long as the owner left instructions that the house was not to be shown to anyone until his return.
Real estate licensee may lawfully refuse to show a home to a minority prospect who has requested to see it in which of the following situations:
When the owner is out of town and has instructed the licensee that no showing may be made in his absence;It is permitted for an agent to refuse to show a property to a minority buyer if the owner is out of town, and as long as the owner left instructions that the house was not to be shown to anyone until his return.
When renting residential property, the amount of security deposit which a lessor may legally receive from a lessee is determined in part by which of the following:
Whether the unit is furnished or not;The maximum allowable security deposit on a residential property depends on if the property is furnished or not. It may not be more than three (3) months rent if furnished, and may not be more than two (2) months rent if unfurnished. Upon termination of the lease the landlord has 3 weeks (21 days) to return the deposit
A real estate broker was employed by the owner of a piece of real property to procure a purchaser. The broker presented two offers to the owner, one from a minority prospect and one from a white prospect, of which the minority prospect had the higher of the two offers. Both of the offers were rejected by the owner. The broker was then instrumental in helping the owner sell the property to the next door neighbor, who was purchasing the property in order to keep minorities out of the neighborhood. Of the following, who would not be guilty of discrimination:
White prospect The broker, seller and neighbor were instrumental in an act of discrimination, not the person who wrote the offer.
A real estate broker presented an offer to a seller which met the terms of the listing. The offer was from a financially-qualified person who was not white. Later, his salesperson presented the seller an offer at a lower price from white prospects. The seller did not accept either offer, but instead, sold the property to a neighbor through the same salesperson. The neighbor wanted to buy the property so as to prevent the person who was not white from moving into the neighborhood. Which of the following parties has not violated the Civil Rights Act of 1968?
White prospects If a person offered to buy a house, and his offer was chosen based upon his race, the person making the offer has not discriminated.
Discrimination in the sale or rental of residential housing accommodations based on sex, marital status, color, religion, race of national origin of the prospective tenant or buyer, is:
all of the other options are correct.Fair housing laws are based on the principle that discrimination is illegal, unenforceable, and contrary to public policy. Placing extra requirements on single buyers is discriminatory and is a violation of the Fair Housing Laws, for example, requiring a co-signor only for unmarried tenants.
Adjusted cost basis may be referred to as:
book value The book value is the value at which an asset is carried on a balance sheet; equals cost minus accumulated depreciation
A listing broker had a signed sale contract on a house. The broker then noticed a crumbling wall in the basement. Which of the following should the broker inform about the wall?
both buyer and seller Licensees owe honesty and disclosure of all material facts to both buyer and seller. Material facts do not need to be disclosed to mortgage companies. That\'s because their primary interest in the property is value and any material defects will already have been factored into the price well before closing.
RESPA provides for specific legal penalties concerning all of the following activities, except:
buyer acquiring a specific loan provider.A buyer acquiring a specific loan provider is allowed, because they are the ones who are the clients of the lender.
According to the Department of Real Estate regulations, it is commingling when a broker:
deposits a renter's check for the security deposit on an income property the broker owns into the trust fund account.Commingling monies is the illegal act by a real estate broker of placing client or customer funds with a broker's personal funds. By law, brokers are required to maintain a separate trust or escrow account for other parties' funds held temporarily by the broker.
When may a finder's fee be paid to a non-licensee?
if it is for making an introduction only A finder's fee may be paid to a non-licensee, provided it is for making an introduction only.
Redlining refers to the now illegal practices by:
lending institutions.Redlining refers to the now illegal practice of lenders to refuse to write loans on properties in certain neighborhoods.
Blockbusting is best described as an attempt:
to panic a neighborhood into thinking property values will decline due to unwanted person(s) moving in.Using race, ethnicity or any other personal characteristic of an individual or a group to influence the buying or selling of real estate is illegal and carries stiff penalties that can be pursued by local, state and federal authorities as well as affected individuals.
